Mitchells & Butlers sacks boss Alistair Darby as shareholders push for change

Harvester and Toby Carvery group Mitchells & Butlers has sacked its chief executive after shareholders lost patience with the rate of improvement at the pub company.

Alistair Darby, chief executive for the past three years, will leave M&B this week and will be replaced by chief operating officer Phil Urban, who joined the company in January.

Chairman Bob Ivell said in a statement: “The non-executive directors have considered the issue of the leadership of M&B very carefully and are delighted to announce Phil’s appointment.

“Phil is a strong leader with industry experience and a proven track record of operational delivery.”

Urban was a managing director at Grosvenor Casinos, a division of Rank Group. Prior to that he was managing director for Whitbread’s pub restaurant division.

The surprise management reshuffle was accompanied by a warning that full-year results were likely to be at the bottom end of management expectations after a poor summer.

M&B said: “The UK eating and drinking out market has been subdued in the summer leading to a slight slowdown in the rate of sales growth, exacerbated by the wet weather.”

Shares in M&B sank 9.55p to 341.85p in early trading, one of the worst performing stocks in the FTSE 250.

In the 50 weeks to September 12, food sales increased by 2.1% on a like-for-like basis, while drinks sales fell by 0.3%. Overall sales edged up by 1%.

The group said that it expected the slow pace of growth to continue.